Mortgage lending 'fell in November'

Date:Friday 18th December 2009
Author: Max Freedman

The amount of money loaned for mortgages fell in November compared to the previous month, according to figures from the Council of Mortgage Lenders(CML).

It was estimated by the CML that the amount loaned last month was £12 billion, which was a ten per cent drop on the £13.3 billion that was given out in mortgages in October.

The number is also down on the same time 12 months ago, when £13.9 billion was lent to buyers.

Some seasonal decline is predicted, but the ten per cent drop is a larger decline that would be expected. The CML, however, predicts that the marker will remain stable into the new year.

CML economist Paul Samter said: "There could be a modest decline in underlying house buying activity in early 2010 due to the stamp duty holiday ending, with activity 'bunching' over the last few months of 2009."

It was reported by the CML earlier in the month that its figures for mortgage arrears were down 2.80 per cent to 2.61 per cent last month, compared to its October figures.